UK mobile operator O2 announced today a new Fair Deal initiative which guarantees existing pre-pay and contract customers the same handset and tariff options offered to new customers, when they come to upgrade.

The deal, which is aimed at boosting customer loyalty, will also entitle upgrading customers to additional "O2 Treats" bonus packages, which include extra calls, texts and other services.

Contract customers coming up to renewal time on O2 will be offered the same choice of phones at the same prices as new customers. Pay and Go pre-pay customers will get back 10 per cent of the value of their top ups over the previous two years (or since their last upgrade) as credit towards a new handset, or for free calls.

According to Sally Cowdry, O2 UK's marketing director: "We want our customers to be the happiest and most loyal, so we listen to what they want and - crucially - act on what they tell us. They said 'why shouldn't existing customers get the same as new ones?' And they're absolutely right."

For more details of the Fair Deal offer see www.o2.co.uk .